SL-X IP S.A.R.L. v. Bank of America Corporation

CourtCourt of Appeals for the Second Circuit
DecidedMarch 24, 2023
Docket21-2697
StatusUnpublished

This text of SL-X IP S.A.R.L. v. Bank of America Corporation (SL-X IP S.A.R.L. v. Bank of America Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SL-X IP S.A.R.L. v. Bank of America Corporation, (2d Cir. 2023).

Opinion

21-2697 (L) SL-X IP S.A.R.L. v. Bank of America Corporation

UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT

SUMMARY ORDER

RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT’S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE NOTATION “SUMMARY ORDER”). A PARTY CITING A SUMMARY ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL.

1 At a stated term of the United States Court of Appeals for the Second Circuit, held at the 2 Thurgood Marshall United States Courthouse, 40 Foley Square, in the City of New York, on the 3 24th day of March, two thousand twenty-three. 4 5 PRESENT: 6 DENNIS JACOBS, 7 MYRNA PÉREZ, 8 SARAH A. L. MERRIAM, 9 Circuit Judges. 10 _____________________________________ 11 12 SL-X IP SA.R.L., SL-X Technology UK Ltd., SL- 13 X Technology USA LLC, SL-X Trading Europe 14 Ltd., and SL-X Trading USA LLC, 15 16 Plaintiffs-Appellants, 17 18 v. Nos. 21-2697, 21-2699 19 20 Merrill Lynch, Pierce, Fenner & Smith Inc., 21 Merrill Lynch L.P. Holdings, Inc., Merrill Lynch 22 Professional Clearing Corp., Credit Suisse AG, 23 Credit Suisse Securities (USA) LLC, Credit Suisse 24 First Boston Next Fund, Inc., Credit Suisse Prime 25 Securities Services (USA) LLC, Goldman Sachs & 26 Co. LLC, J.P. Morgan Securities LLC, J.P. 27 Morgan Prime, Inc., J.P. Morgan Strategic 28 Securities Lending Corp., J.P. Morgan Chase 29 Bank, N.A., Morgan Stanley & Co. LLC, Prime 30 Dealer Services Corp., Strategic Investments I,

1 1 Inc., UBS AG, UBS Americas Inc., UBS 2 Securities LLC, UBS Financial Services Inc., 3 EquiLend LLC, EquiLend Europe Ltd., EquiLend 4 Holdings LLC, 5 6 Defendants - Appellees, 7 8 Bank of America Corp., Goldman Sachs Group, 9 Inc., Goldman Sachs Execution & Clearing, L.P., 10 J.P. Morgan Chase & Co., J.P. Morgan 11 Institutional Investments Inc., UBS Group AG, 12 UBS Investment Bank, UBS Asset Management 13 (US) Inc., UBS Fund Services (USA) LLC, Credit 14 Suisse Group AG, Morgan Stanley, Morgan 15 Stanley Capital Management, LLC, Morgan 16 Stanley Distribution, Inc., 17 18 Defendants. * 19 20 _____________________________________ 21 22 FOR PLAINTIFFS-APPELLANTS: RISHI BHANDARI (Evan Mandel, Robert 23 Glunt, on the brief), Mandel Bhandari LLP, 24 New York, NY. 25 26 FOR DEFENDANTS-APPELLEES LAUREN M. ROSENBERG (Michael A. Paskin, 27 MORGAN STANLEY & CO. LLC, on the brief), Cravath, Swaine & Moore LLP, 28 PRIME DEALER SERVICES CORP., New York, NY. 29 AND STRATEGIC INVESTMENTS I, INC.: 30 31 FOR DEFENDANTS-APPELLEES Adam S. Hakki, Richard F. Schwed, Michael 32 MERRILL LYNCH, PIERCE, FENNER P. Mitchell, Shearman & Sterling LLP, New 33 & SMITH INC., MERRILL LYNCH L.P. York, NY and Washington, D.C. 34 HOLDINGS, INC., AND MERRILL LYNCH 35 PROFESSIONAL CLEARING CORP.: 36 37 FOR DEFENDANTS-APPELLEES David G. Januszewski, Herbert S. Washer, 38 CREDIT SUISSE AG, CREDIT SUISSE Elai Katz, Jason M. Hall, Margaret A. 39 SECURITIES (USA) LLC, CREDIT Barone, Cahill Gordon & Reindel LLP, 40 SUISSE FIRST BOSTON NEXT FUND, New York, NY. 41 INC., AND CREDIT SUISSE PRIME 42 SECURITIES SERVICES (USA) LLC:

* The Clerk of Court is respectfully directed to amend the case caption as set forth above.

2 1 FOR DEFENDANT-APPELLEE Robert Y. Sperling, George Mastoris, Staci 2 GOLDMAN SACHS & CO. LLC: Yablon, Winston & Strawn LLP, Chicago, 3 IL and New York, NY. 4 5 FOR DEFENDANTS-APPELLEES Robert D. Wick, Henry B. Liu, John S. 6 J.P. MORGAN SECURITIES LLC, J.P. Playforth, Jeffrey Cao, Covington & Burling 7 MORGAN PRIME, INC., J.P. MORGAN LLP, Washington, D.C. 8 STRATEGIC SECURITIES LENDING 9 CORP., AND J.P. MORGAN CHASE 10 BANK, N.A.: 11 12 FOR DEFENDANTS-APPELLEES Peter G. Wilson, Katten Muchin Rosenman 13 UBS AG, UBS AMERICAS INC., LLP, Chicago, IL. 14 UBS SECURITIES LLC, AND UBS 15 FINANCIAL SERVICES INC.: 16 17 FOR DEFENDANTS-APPELLEES Carmine D. Boccuzzi, Jr., Cleary Gottlieb 18 EQUILEND LLC, EQUILEND Steen & Hamilton LLP, New York, NY. 19 EUROPE LTD., AND EQUILEND 20 HOLDINGS LLC: 21 22 Appeal from an order of the United States District Court for the Southern District of New

23 York (Sullivan, J.).

24 UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED, AND

25 DECREED that the order of the district court is AFFIRMED.

26 SL-x IP S.à.r.l. (the “Parent Company”) and its four subsidiaries, SL-x Technology UK

27 Limited, SL-x Trading Europe Limited, SL-x Technology USA LLC, and SL-x Trading USA LLC

28 (the “Subsidiary Companies”) (collectively, “SL-x”) filed suits alleging Defendants-Appellees

29 violated federal and state antitrust laws by colluding to force SL-x out of the stock lending market,

30 and asserting state law claims of tortious interference with business relations, unjust enrichment,

31 and violations of New York’s Deceptive Practices Act. SL-x appeals from the order entered on

32 September 30, 2021, by the United States District Court for the Southern District of New York

33 (Sullivan, J.), dismissing the Parent Company’s complaint for lack of Article III standing,

34 dismissing the federal and state antitrust claims in the Subsidiary Companies’ complaint as time-

3 1 barred, and declining to exercise supplemental jurisdiction over the remaining state law claims.

2 For the reasons that follow, we affirm the decision of the district court. We assume the parties’

3 familiarity with the underlying facts, the procedural history of the case, and the issues on appeal,

4 which we discuss only as necessary to explain our decision.

5 I. Background

6 A. The Alleged Antitrust Conspiracy

7 SL-x was a financial technology startup that offered a patented system for comparing and

8 executing stock lending transactions. The Parent Company is a holding company that operated

9 the SL-x business through the Subsidiary Companies.

10 EquiLend is a consortium of financial services institutions. EquiLend facilitates stock

11 loans by providing an electronic bulletin board on which stock loan pricing can be posted, as well

12 as back-end services that assist with the settlement of stock loans. During the relevant time period,

13 Defendants, some of the largest banks in the world, were co-owners of EquiLend and some of their

14 employees served on EquiLend’s Board of Directors.

15 SL-x pitched its services to the individual financial institution Defendants comprising

16 EquiLend as a competitor of EquiLend from 2011 through July of 2014. SL-x alleges that during

17 that time, EquiLend served as a forum that facilitated Defendants’ agreement to collectively

18 boycott SL-x in that representatives of Defendants attended EquiLend meetings where they

19 discussed whether to do business with SL-x. SL-x also alleges that it attempted to pursue business

20 with third parties, but learned that those efforts failed because Defendants threatened and pressured

21 the third parties to prevent them from doing business with SL-x. SL-x claims that because of

22 Defendants’ anticompetitive conduct, it was forced to sell its intellectual property to EquiLend at

23 a steep discount in May of 2015—a sale which EquiLend allegedly pursued so that no other party

4 1 could make use of the technology. SL-x Trading Europe Limited and SL-x Technology UK

2 Limited were dissolved in 2015 and 2016.

3 B. Procedural History

4 On November 1, 2018, the Parent Company sued Defendants, claiming they had colluded

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Cite This Page — Counsel Stack

Bluebook (online)
SL-X IP S.A.R.L. v. Bank of America Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sl-x-ip-sarl-v-bank-of-america-corporation-ca2-2023.